Earnings call transcript: B2Gold’s Q2 2025 sees strong cash flow and operational updates

B2Gold Corporation held its Q2 2025 earnings call, reporting steady financial performance and operational progress. The company posted basic and adjusted earnings per share of 12 cents and generated an operating cash flow of $301 million. According to InvestingPro data, B2Gold trades at an attractive P/E ratio of 4.83 and offers a substantial dividend yield of 7.64%. The company’s strategic updates and future production plans were highlighted, including the anticipated commercial production at Goose Mine.

Key Takeaways

• B2Gold reported 12 cents EPS and $301 million in operating cash flow.
• Goose Mine expected to start commercial production in September 2025.
• Cash operating cost guidance reduced to $795-$855 per ounce.
• Strong jurisdictional presence with diversification efforts underway.

Company Performance

B2Gold’s performance in Q2 2025 reflects its strategic execution and focus on operational excellence. With a market capitalization of $679.52 million and an overall Financial Health score of "GOOD" from InvestingPro, the company continues to leverage its diversified operations across Mali, the Philippines, Namibia, and potential Canadian expansions. This quarter, B2Gold maintained robust production levels and a strong safety record, particularly at its Masbate site. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Operating cash flow: $301 million
• Basic and adjusted earnings per share: 12 cents
• Cash and cash equivalents: $38 million
• Undrawn revolving credit facility: $800 million

Outlook & Guidance

B2Gold’s production guidance for 2025 ranges from 971,000 to 1,075,000 ounces. The company anticipates commercial production at Goose Mine in September 2025, targeting 120,000-150,000 ounces for the year. Additionally, Fekola Regional’s permit is expected in Q3 2025, with a potential output of 160,000-180,000 ounces in 2026.

Executive Commentary

Clive Johnson, CEO, emphasized, "We will not surprise the shareholders with a development project M&A," indicating a focus on organic growth. He also highlighted opportunities to increase gold production, reflecting B2Gold’s strategic priorities. Bill Lytle, COO, noted, "The mill will run at more than 4,000 tons. It’s just a question of can you keep the availability up," underscoring operational efficiencies.

Risks and Challenges

• Potential fluctuations in gold prices could impact revenue.
• Operational risks associated with new mine ramp-ups, such as Goose Mine.
• Geopolitical and jurisdictional risks in operating regions.
• Market competition and technological advancements in gold production.

B2Gold’s Q2 2025 earnings call outlined a solid financial foundation and strategic initiatives aimed at sustaining growth and diversification. With a beta of 1.23 and an impressive one-year return of 20.02%, the company’s proactive management of operational costs and strategic expansions positions it well for future success. InvestingPro subscribers can access additional metrics and expert analysis to better understand B2Gold’s growth potential and market position.

Full transcript - B2Gold Corp (BTO) Q2 2025:

Clive Johnson, President and CEO, B2Gold Corporation: Thank you for standing by.

This is today’s conference operator. Welcome to the B2Gold Corporation’s Second Quarter twenty twenty five Financial Results Conference Call. As a reminder, all participants today are in a listen only mode and the conference is being recorded. After today’s presentation, there will be an opportunity for analysts to ask questions. I would now like to turn the conference over to Mr.

Clive Johnson, President and CEO of B2Gold. Please proceed. Thanks, operator. Welcome to the call, everyone. We feel we had a strong quarter, the second quarter, with strong operational financial results.

Across all our operations, we are very pleased with our second quarter results for coal. Last Friday, March, coal mines all came in ahead of expectations in the second quarter on the production side, resulting in lower than expected cash operating costs per ounce at all three operations. The operations continue to run well. We expect to meet our annual guidance. Additionally, a big milestone on 06/03/2025, we celebrated the inaugural gold award at the building construction of this line.

This marks a transformational moment for B2Gold that is a true milestone for our staff and partners who have worked tirelessly to reach this achievement. At Cruise, the focus now turns to continue steady state operations and increase throughput. Full design capacity ramp up to commercial production which is expected to be achieved in September 2025, which is quite a rapid ramp up, three months, and that’s typical of our track record of history. And now we need to have seen some very positive things in our view, and that’s the state of Valley’s best approval to commence on the main operations. It’s a call.

It’s in the police no more production, which has. The approval follows that we could be a significant management at several key individuals including the prime minister, the minister of pilots, the minister of mines, and advised them. I think this is a really important point because for those that are concerned about the future coal mining value, this clearly is under the fact that the government value is cooperating with each of all, much each of all to be in the country that operates the coal mine and the mutual extension. So the the next step is working with the city of Valley to realize the expectation license for the coal ratio, and we’re able to see that in in in the short term. Expecting approval in 2025.

During the 2025, bills were announced positive results of the 2025 Gramalote feasibility study, which demonstrated that the Gramalote project has meaningful production profile and positive approach to economics. The worst that terminate the better balls are cutting them with a reduced footprint and then the the patient of Gramalote. The the the this year. And with the majority of growth capital spending assumes that the the company has set up well to the past, and it showed the value over the coming years, production from the new coordination. But we are looking forward to another strong quarter of mission financially.

And as I said, looking to meet our our guidance for 2025. So with that, I think I’ll turn it over to Mike Sindleton, who’s received a phone. Michael, give you a quick review of some of the financial highlights, and then we’ll have to go live on the CDP operations, talk to us. Give us a quick update on this, and we’ll to open up for questions. So, Mike, over to you.

Thanks, Clyde. Financially, it was a quarter. Basic earnings per share were 12¢ per share and adjusting for one time items, which were actually offsetting. We we actually realized 12¢ per share adjusted earnings. And, you know, fair to say that that definitely benefited from the strong average gold sales price.

And just to maybe touch on the sales point too, we were slightly behind budgeted sales ounces in the quarter, but that was purely on a timing basis, the timing of shipments from several of the sites that those ounces were shipped out just after the period end of the sold in early July. Operating cash flow side, the operating cash flow before working capital adjustments of $301,000,000 in the second quarter, another strong result and again highlights the cash generation potential of our operating assets and this gold price environment. Balance sheet wise, we continue to remain in a strong financial position. We’ve got cash and cash equivalents of $3.00 $8,000,000 at the end of the second quarter. And also at the end of the second quarter, we had the full 800,000,000 available in our revolving credit facility, which is undrawn, plus the 200,000,000 accordion feature.

I will say that subsequent to June, the June, we did draw down 200,000,000 on the revolver, and that was just that was to to help us manage working capital requirements as we start to deliver into our gold prepayment commitments over the twelve month period from July 25 to June 26. In fact, we have already delivered the first tranche of those, so we’re starting to unwind that position. With continued strong performance across the portfolio and the ramp up of Goose, which is now well underway, we were pleased to restate and reiterate our production guidance for 2025 unchanged with full year production expected to be between 971,075,000 ounces. And we expect boost to still contribute between a 120,000 to a 150,000 of those ounces. Again, on the positive side, the lower than expected cash cost per ounces at at the the existing three operating mines at Sequoia, Masbate, and Shakoto.

We’re pleased to announce that the company has reduced its consolidated cash cost guidance range for those three operations to between 740 and $800 per ounce. So or produced. Sorry. This is lower than the previous guidance range of between 835 and 895 per ounce. And then with the inclusion of the post commercial production estimates for the Goose mine, I remind you that we expect Goose to come into commercial production in September.

Consolidated cash operating guidance is now forecast to be between $795 and $855 per ounce. And overall, on a liquidity basis, we continue to maintain a good amount of financial flexibility to be able to allow us to complete our remaining ramp up of construction activities at Deuce to fully repay our delivering to the gold prepaid entered in June in early twenty four and to complete the other sustaining and growth initiatives across the portfolio. And we’ll continue to fund healthy exploration programs as well, which we expect will extend mine life. And with that, I’ll turn it over to Bill for an operation and project update. Alright.

Thanks, Mike. I just got back from the goose, so I may be a little feral during this, so bear with me. As Mike said, on pre operations, we expect to meet or exceed all of our targets for the year. But probably what everyone wants to talk about is goose. So just going back to going back to what has been completed there, Goose, all the major construction activities which are required were nearly completed at the end of the quarter, and the mine ramp up is now well underway.

The focus for the third quarter now turns actually to optimizing the current operations and increasing throughput to full capacity. As Mike indicated, a ramp up to commercial production is expected in September 2025. Things which were completed in the 2025 at the Goose include the completion of the mining of the Eco pit, remember that was our tailings facility and commissioning. So we are now placing tails in Echo. Full ramp up of mining of the Umwell Open Pit in the second quarter.

We also had continued development of the Umwell underground. We completed the Fresh Air Rays one already and in the process of developing Fresh Air Rays two, which will be needed in the 2025. We commenced dewatering of the Lama pit. All these things are required to run the mill correctly. This provides fresh water and reclaim water to the mill.

We developed the unwell open pit and underground, and that remains a priority to ensure that the adequate mill feed volumes are maintained. If you look at around the other operations, Mali continued the strong performance for 2025, exceeding gold production expectations again in the second quarter. As Mike said, cash costs per ounce were also lower than expected. Underground, after meeting with the government last quarter or last month, the underground production has commenced as announced on July 30. The underground development is well advanced with over 9,300 meters of development work plus the installation of all required underground mining infrastructure having all been performed prior to commencing production.

If you remember, we were actually given a permit to do all the development. So even even though we were thirty days late on the starting of mining of ore, we, in fact, continue to develop right up until July 30. So the question I’ve heard being asked several times is whether or not we think we’re going to get the ounces required from underground. We absolutely see a path to make sure that all the required ounces from underground will be delivered in 2025. The regional project, we continued with our meeting with them.

We continue to work with the state of Mali to finalize the approval of the regional exploitation permit in the 2025. Just kind of late breaking. We’ve actually had our first technical session with them this morning. We absolutely see a path towards getting the permit. B2Gold is ready to commence pre stripping activities with the Fekola regional infrastructure.

Remember, once again, this was one of those facilities where they allowed us to do all of the infrastructure development. So the haul road’s in place and all the infrastructure’s already in place. We’re just we’re just waiting on a permit to start pre stripping. Subsequent subsequent to 06/30/2025, the Fekola mill celebrated a significant milestone with 4,000,000 ounces of gold produced since the inception of the project. At Masbate, the operations continue to perform well with a world class safety track record, which I think we announced more than two thousand four hundred days without a lost time incident.

Mine production significantly outperformed expectations, and we anticipate consistent production in the second half will result in strong 2025 performance and robust margins. Otjikoto is also going very well. The open pit and underground went well during the second quarter with production also exceeding expectations. During the second quarter, remember, we’re working on this Antelope deposit. So we continue to focus on developing that with a target released in the 2025.

And then the other development project is Gramalote. We released the positive feasibility study. Work has commenced on a modification of the work plan and environmental impact study, and we expect to be complete in late twenty twenty five or early twenty twenty six. We anticipate that the permit modification time frame should be approximately twelve to eighteen months. With that, Clive, I’ll turn it back over to you.

Okay. Excellent. Operator, we’re ready to turn up the Thank you. We will now begin the analyst question and answer session. As a reminder, to join the question queue, you may press star then one on your telephone keypad.

You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star then 2. We will now pause momentarily to assemble our roster. And today’s first question comes from Fahad Tariq with Jefferies.

Please proceed. Hi. Thanks for taking my question. In the press release, you mentioned lower than anticipated fuel costs in a number of places, not just at Fekola, but also in Versace. Can you just maybe talk about what the expectation was at the beginning of the year when you set guidance?

And I’m just curious why it’s trending lower than expected. I can start. I’ll start too. Well, you know, we when we budget, we typically have a look at the forward curves on the on the fuel side, usually around September, October. So we use those as the base.

And and then what we’ve just what we’ve seen and and what’s been realized is the price of the HFO has been about 9% lower than those prices over the first six months of 2025 in diesel. It’s actually been more it’s been something more like 13% below. So, you know, we we made our best estimate back when when we set the budget, probably set some somewhere around the October price because we do our budgeting sort of finalize it up in early November. And all I can tell you is that we’ve looked forward, we have taken into account those lower fuel costs when we’re looking at the reguidance that we put out in cash operating side. Okay.

That’s helpful. And then on Goose, there was a comment about the CapEx guidance for the second half of this year, 176,000,000. I’m just trying to reconcile just the overall CapEx that goes relative to, I guess, what the project guidance the project CapEx guidance was before, and I think it was reiterated in the May release. Can you just maybe help us walk through that? Like is I guess the other way of asking is, is that second half CapEx guidance of $176,000,000 is that consistent with what you were expecting?

Yeah. Again, I can I can start that, and Bill can jump in? I mean, overall, on the project, we did see some acceleration of cost as we as we work our way up to the first go forward at the ’1. So we probably thought somewhere around about 5% overall cost increases against the the budget. Then what we also experienced as we as we ran up to that is we did we did accelerate some CapEx.

CapEx that we’re leaving and have to in the tax report and actually a little bit from future years, and that that totals about somewhere in the region of 60,000,000. And then we also had what we’ve described in the in the MD and A and disclosures. We had some mill and process point upgrades from in the region of 40,000,000. So approximately 100,000,000 between those two where we pull stuff forward from second half or and and then about 40 that we’ve added in to the second half. I think that’s for further no one process plan for upgrades, and I think Bill can talk to those a little bit.

Yeah. Really relating to upgrades, I would say, once again, it was really operability or availability of the mill. One of the things that as as we got in and building, we realized a lot of the a lot of the lines didn’t have the necessary valving and piping, the redundancy built in, the ability to do maintenance on the mill while it continues to operate. So we added, I think I saw from the finance group approximately an additional $26,000,000 on the mill side related to kind of what I would call upgrades or improvements in availability. You know, like I said, that really relates to a lot of that small stuff, additional pumping, piping, valves, and installation of all that stuff.

Okay. Thank you. Our next question comes from Wayne Lam with TD Securities. Please proceed.

Mike Sindleton, CFO, B2Gold Corporation: Yeah. Thanks, guys. Congrats on a good quarter and and getting the Secola underground permit. Seems like you have some good momentum in Maui now. Just just wondering what the mechanics would be in terms of getting the Secola regional permit and what the final points of negotiation might be.

And any potential hurdles to getting that permit by the end of Q3?

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. So we as I said, we went down and met with we we met with the Ministry of Mines. And and during discussion, it it it almost seemed like for them, the regional permit had kinda dropped off because they were dealing with some of the other govern the other mining houses issue there, yeah, which shall not be named on this call. But once we once we brought it forward, quite frankly, they were a little embarrassed that they hadn’t done it yet. And so they they immediately agreed to try and get this thing pushed out by the ’3.

That was their schedule, not ours. And they immediately agreed to set up a commission and start working on that. So that happened this morning. We haven’t heard any outstanding issues other than to hear that that that that it wasn’t a a yell fester. It wasn’t it wasn’t an argument.

It was just a very constructive discussion, which we think leads to the permit.

Mike Sindleton, CFO, B2Gold Corporation: Okay, great. And then maybe just wondering in terms of the ramp up of Goose relative to the mine plan. You guys had outlined in the plan 125,000 ounces this year, which would be at the lower end of the guidance. It seems like you’ve been making some good progress there just on the stripping of the Ecopet and the development. But just wondering where you guys kind of see the opportunity to outperform what’s been outlined in the plan.

Is that on the plant performance? Or is there upside on the grade profile as well?

Clive Johnson, President and CEO, B2Gold Corporation: I would say both at this point. Once again, you’re asking questions right at the front of commissioning. So certainly, we have an aggressive ramp up plan, but historically, we’ve been able to beat that. So there is some potential there. There’s also some potential as we start to move out of kind of the eco low grade material, which, you know, remember the eco pit was never designed to be a kind of a high grade feeder into the mill into the Umwell pit.

If we can get our head around how can we mine that quicker, certainly, there is some potential there. And so I would say not only on the mill ramp up side, which admittedly, a three month ramp up is aggressive versus many other of our peers, but not really aggressive versus what we’ve historically done. And then on the unwell side, if we can get additional grade from the open pit.

Mike Sindleton, CFO, B2Gold Corporation: Okay. Great. Thanks. And then maybe just last one. Maybe just a follow-up on CapEx side.

Just given the the increase in CapEx relative to the $270,000,000 in the mine plan. Just wondering how much of that would have been brought forward from 02/1936. Just trying to figure out if maybe we should be anticipating a lower CapEx number relative to the $140,000,000 outlined for next year in the mine plan.

Clive Johnson, President and CEO, B2Gold Corporation: Mike, did you go on? Okay. So you’re talking about what may be pulled forward from ’26 Yeah. In in the second half? Yeah.

That’s what you’re asking? Yeah. Well, I think there’s there’s, you know, there’s there’s there’s some site infrastructure upgrades or or Bill’s doing, I think. What he wants to do to to pull to to enhance both the MLA and the site that they’re about 15,000,000. There’s as Bill mentioned, there’s 26 roughly related to the mill.

So there’s 40, let’s say, that that I I think we didn’t have to do this year, but we wanna do to enhance it. And then there’s some prepayments on some generator additions that we have. There’s another 24. So it would be more than 60. That would be full forward from future years.

Mike Sindleton, CFO, B2Gold Corporation: Okay. Got it. Okay. Cool. Thanks for taking my question.

Clive Johnson, President and CEO, B2Gold Corporation: Welcome. And your next question is from Ovis Habib with Scotiabank. Please

Bill Lytle, COO, B2Gold Corporation: proceed.

Mike Sindleton, CFO, B2Gold Corporation: Thanks, operator. Good morning, Clive and B2 team. Congrats on a good quarter. Just a couple of questions from me, starting off with Fekola maybe. In terms of the mine plan sequencing for Fekola kind of going into 2026, does that change now that you have the Fekola underground permit in hand?

Clive Johnson, President and CEO, B2Gold Corporation: So remember, we always talked about having it after q two. So our life of mine showed it really coming online in July. So the underground permit doesn’t really change it other than we have done a little bit more development than what was in the life of mine. So we may be able to steal some additional ounces. But I really think that’s more of a 2025 issue, not a 2026 issue.

And as far as 2026, we’re still working on the budget and where we’re going with that. So I don’t really want to comment on where the ounces will come from in 2026 just yet.

Mike Sindleton, CFO, B2Gold Corporation: Got it. And then just Bill, in terms of what would be the current grade of the underground stockpiles that you have on-site? And what would the be the grade that you’re expecting from the stopes that you’re currently mining?

Clive Johnson, President and CEO, B2Gold Corporation: You’re talking at Fekola? Fekola Underground. Yes. Well, I don’t I’d I’d have to look that one up for sure. Let me just I did actually report to the board what it what it is.

So let me come during this call, let me come back to you on that.

Mike Sindleton, CFO, B2Gold Corporation: Sounds good. Sounds good. No worries. And then just kind of moving on from there, you know, in terms of, you know, you’re targeting about 25,000 ounces from the underground in 2025. I guess this is kind of my follow-up question from my previous one.

But is there a target that you have in mind for 2026 for the Pecola underground that’s gonna you know, is there a range that you can talk about right now?

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. So remember, we always talk about the fact that we we thought we could produce about 80 or a 100,000 between 80 and a 100,000 ounces out of the underground. But remember, that replaces lower grade ounces. So the reality is is is you’re gonna get kind of probably 50% of that. So, you know, we’re we’re kinda targeting that 50,000 ounces a year.

And just going back to your previous question, I see the total the total underground tons mined, this is free this is kind of development, which is on the stockpile right now, is about just about 35,000 ounces. It’s just, like, 2.7 grams per ton. And then once again, I’m speaking out of turn, but we’re we’re at least double that in in the scopes we’ll be mining.

Mike Sindleton, CFO, B2Gold Corporation: Got it. Thanks for that color, Bill. And and then just moving on to the regional permit side, assuming you get the permit by the ’3, is that what you’re targeting? Are you comfortable with the 160,000

Bill Lytle, COO, B2Gold Corporation: to 180,000

Mike Sindleton, CFO, B2Gold Corporation: ounces of production in 2026 kind of that’s kind of going by the tech report that was presented earlier this year?

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. I mean, there’s there’s no there’s no changes to what the actual mining looks like from the tech report. Clearly, once again, in in the in the budgeting process on where where the ounces are gonna come from, that may shift around some, but the ounces haven’t changed from the regional from from what was on the tech report.

Mike Sindleton, CFO, B2Gold Corporation: Sounds good. Okay. Thanks for that. And then just quickly moving on to Goose. I’m really looking forward

Clive Johnson, President and CEO, B2Gold Corporation: to that commissioning of the

Mike Sindleton, CFO, B2Gold Corporation: Goose in September. Bill, how’s underground development progressing there? And and do you have kind of, you know, now the right people and equipment in place in terms of what you were targeting for for the underground? This is at Google.

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. Yeah. So first of all, I remember, like, when I first joined these calls, Clive declaring, I think, you that you only get three questions. So let’s start with that. But this this is question number four.

I’m gonna take it. Things are going well. You know, we we kind of we kinda hit our stride. We we have, as you know, turned over a bunch of people in the underground. We have there’s a new mining manager which came in this year, new technical services manager.

All those people are in place. We also brought in additional equipment on on the program this year for the underground. So the answer is yes. We now have the right people and, yes, we now have the right equipment. There really isn’t an excuse for the site not to be able to deliver.

Mike Sindleton, CFO, B2Gold Corporation: Okay. Good stuff, Bill. Thanks so much for all this color, and thanks for taking my questions, and congrats on a good quarter.

Clive Johnson, President and CEO, B2Gold Corporation: And our next question is from Anita Soni with CIBC World Markets. Please proceed.

Anita Soni, Analyst, CIBC World Markets: Good morning, guys, Mike and Bill. I’m just gonna ask you so that that’ll make up for all these extra question there. First question was your commercial production. What’s your definition of commercial production? I just wanna clarify several different definitions.

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. I think it’s the same thing we use at the Fekola and Otjikoto. So that’s like an average of 65% nameplate throughput over thirty days.

Anita Soni, Analyst, CIBC World Markets: Okay. And then what’s the for from your perspective, what’s the next milestone in in terms of, like, you know, the ramp? Like, I guess, year end, what are you what are you targeting for like, what what’s the throughput ramp up you’re hoping to get to by year end and then for how long?

Clive Johnson, President and CEO, B2Gold Corporation: By year end? We wanna be at that nameplate. 4,000 for sure.

Anita Soni, Analyst, CIBC World Markets: Maintain a 100% for the whole quarter?

Clive Johnson, President and CEO, B2Gold Corporation: Well, I I think I think it’s, like, 92 or 93% availability. It’s something like that. Okay. I forget what it is. It’ll be in the tech report.

Anita Soni, Analyst, CIBC World Markets: Okay. And then last question, I guess, that I did ask for you. Just in terms of of the the optimization plans that you’re looking at. In terms of the the the doing a a winter ice road less than, I think you said, less than annually, what what what would that entail? I I would assume that it’s kind of a is there is there a way to do an ice road that’s, you know, not, like, not at the ice road timing?

Or or what was it every other year? Or what, like, what are you looking at? Like, you know, every 15 months or so? Like, I’m just trying to understand that for you.

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. Well, it it can’t be every fifteen months because the escrow must be almost always between February and kind of that May 1, let’s say, May 6. So that is the escrow date. The question you’re asking is actually one that that’s almost like a engineering engineering interest. So the question really revolves around fuel is the first problem.

If in fact you need 80,000,000 liters of fuel, which is what we’re sending down the road every year right now. It would have to be every year. But now let’s say because we just don’t have the tankage to do anything less than that. But now let’s say that we actually are successful by by putting these medium speed generators in, which saves about 10% of that. And then you say, okay.

Now we’re gonna put our wind farm in, which is 50 megawatts. Could you get to a point where the number is less than half? Then you suddenly say, okay. Now can I increase my reagents to make up that difference in the off years and do it? Those studies are obviously very preliminary so much so I’m not convinced that 80,000,000 liters is actually what we’re gonna use this year.

For example, right now, we’re sitting here in August, and we still have 70,000,000 liters of fuel sitting on-site. So how does that really add up once you get into full production, and we just don’t know yet.

Anita Soni, Analyst, CIBC World Markets: Okay. All right. That’s it for my questions, and congrats on some

Clive Johnson, President and CEO, B2Gold Corporation: strong ops this quarter. Absolutely. The next question is from Lawson Winder with Bank of America Securities. Please proceed. Thank you, operator.

Good morning, gentlemen.

Mike Sindleton, CFO, B2Gold Corporation: Thank you for today’s update. Well done on the permanent success in Mali. What I wanted to ask is more around jurisdiction as it pertains to Colombia in particular and Canada. So acknowledging B2B2Gold’s historical success as it being jurisdictionally agnostic and focusing on asset quality instead, I think feedback from the market would suggest that the market likes to pivot to Canada. How do you think about assets in Canada?

And what would be to gold appetite to add more assets in Canada? And then conversely, how does Colombia then stack up in terms of jurisdictional risk? And is that at all a headwind today for a potential site cleaning decision on Gramalote? Yes.

Clive Johnson, President and CEO, B2Gold Corporation: I think we’re definitely interested in doing more work in Canada. But once again, we’re budget driven. From a geopolitical point of view, we want more diversification. So definitely, we’re looking for additional opportunities in Canada. Grand Malarte, in Colombia, we do quite like what’s been happening there.

I mean, we do have a permit for a larger operation, so we need to come back and modify that permit. We’ve got very positive support in Ethiopia, local population and government in Ethiopia and also some signals of support from the federal government as well. But I’m glad you raised the the question because I wanna say to that a little bit as we’re talking about m and a. You know, we will not surprise the shareholders with the development project m and a. Great discipline.

We build one right at a time, and we think that was very interesting as a as a project to for us We’re in a strong position to do that, and we might go to see the feasibility study. I I think it would be a very good project for us. We’ve got, you know, to get through the permitting process and then make a decision with it going forward. But I just wanna underline again, no m and a for development projects.

Potentially, in the future, sometimes we find an opportunity to increase our our gold production through some kind of deal. We do have a look at that, of course. It just makes sense. But at the end of the day, we’re not gonna surprise the market with a major acquisition of a development project.

Mike Sindleton, CFO, B2Gold Corporation: Fantastic. And and if I could just get one more in on Goose. In your update earlier in the year, you highlighted the potential for an expansion in the processing capacity. Today, now that you’re approaching commercial production, what’s the latest thinking on timing of that expense And has there been any change in thinking on the magnitude?

Clive Johnson, President and CEO, B2Gold Corporation: Is is this the what have you done for me lately lately question?

Mike Sindleton, CFO, B2Gold Corporation: Sort of. Thanks a lot.

Clive Johnson, President and CEO, B2Gold Corporation: Alright. So so so the answer is, as you know, we’ve got several studies in the hopper. One would be, you know, we got a flotation circuit, which you might be able to add. The other is would you put would you put expand the the mill capacity, go up something like 6,000 tonnes a day. Those are all due really first look by the end of this year.

And so I think we’ll I can’t remember if we’re talking Q1 next year, we’re talking putting it out, the results. But at at the end of the day, those are very, very early on in the study, you know, where they go. But we think they’re all very real. And and just so you know, we talked about some of these optimizations. The mill will run at more than 4,000 tons.

It’s just a question of can you keep the availability up. So by doing by increasing some of these optimizations you’ve already put in, like I said, these valves, piping, everything, you know, there there is the potential we get it squeeze out some additional capacity as it currently stands. No promises. We’re saying 4,000 tons a day.

Mike Sindleton, CFO, B2Gold Corporation: Fair enough. Thank you very much for taking my questions.

Clive Johnson, President and CEO, B2Gold Corporation: And the next question comes from Francesco Costanzo with Scotiabank. Please proceed. Hi, guys. Sorry, I didn’t mean to jump in the questions here. I think, obviously, you then the others have already asked all the pertinent questions.

So apologies for that. And the next question comes from Don DeMarco with National Bank Financial. So

Bill Lytle, COO, B2Gold Corporation: so it sounds like things are moving moving along well in Maui now. I mean, you got we’ll look to the regional permanent. But, you know, what

Clive Johnson, President and CEO, B2Gold Corporation: was the reason for delays? I mean, was

Bill Lytle, COO, B2Gold Corporation: the government focusing on Barrick and maybe others? Or or is this kinda the norm in now? And you are from a benefit from optimal my performance from a tax point of view?

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. So maybe I’ll take that too because we were just down there. There there’s a there’s a couple of things there. Remember, there there was this whole shift in the government, and they readily admitted that they didn’t really know who was doing what. So you had the minister of finance working on this kind of updated mining code, and the Minister of Mine didn’t know where it is mandated and and the Minister of Mine started.

We’ve highlighted that. We had a chance to meet with the prime minister, and they they were visibly embarrassed and said that that that that’s the nonstarter for them, and they will get it rectified. So, certainly, I I think some of the other mining issues in Mali play a factor. I think I think the the fact that that there were that there were some big disputes out there that that they had to pay attention to took up some of their bandwidth, but also ultimately, they also didn’t really know what each other was doing. I I I will say that that all three ministers we met with mister Main, finished finance, and the prime minister, They all apologized profusely.

They all said that they’re committed to getting this done. Remember, this is they’ve got a big stake in this too. So that they want to go as quickly as they can, of course, legally, to get us this permit and get us going.

Bill Lytle, COO, B2Gold Corporation: Okay. Great. Thanks a

Clive Johnson, President and CEO, B2Gold Corporation: lot. Yeah. Go ahead. Thank you. Maybe just to add a little bit if I could just add a little bit to that, some of the one of the questions you’re asking about for the negotiations with the government to get the permit for for for the reason.

There is no further negotiations. We’re in actively terms negotiated in the MOU last September. Just wanna clarify that. We’re not in negotiation mode. We’re just getting the permit done and working closely with the government to do it.

It’s still touched on revenue side for the government of Mali, which obviously gave the that’s the for the revenue. The investment the fastest way for them to get revenue from gold mine would be to get us that permit because they owe us three to 5% of the regional. So that they’re they’re on the same page as us wanting to get that permit to get more of the charting board as soon as possible.

Bill Lytle, COO, B2Gold Corporation: Okay. That that helps. That certainly clarifies things because that would have been our impression as well. So that’s encouraging for the future. But sticking with Fekola then in Maui.

So I thought production is up 35% quarter over quarter grades are elevated. So, Bill, do you expect this to continue into H2? What was some of the drivers here in Q2?

Clive Johnson, President and CEO, B2Gold Corporation: Well, some of the drivers really revolved around the finding additional ore kind of on the margins of what where the resource model was. And it was quite frankly, it wasn’t higher grade ounces, but it was ounces or it was tons that would have been considered waste that we ended up being able to process through the mill. We also had a very good run with the mill. The mill had a very good quarter. And those were the main two main things.

So, obviously, I can’t predict what’s gonna happen outside of the resource model in q three to q four. But the mill is kinda firing on all cylinders. And, you know, one of the things that that we’ve been very open about is that even if we even if we don’t get funds or get out this from the regional stuff into the mill in 2025, we still feel very comfortable with our range that we put out there. So that obviously would mean that we’re gonna get additional out this from somewhere else. That was a pretty stripping.

Yeah. I think I did yeah. Glad to take a good point. Even if we get the permit in kind of, let’s say, August or September, there is still a pre stripping campaign, which we have to do before we start trucking tons down to the mill.

Bill Lytle, COO, B2Gold Corporation: Okay. Okay. And then just for final question, I was shifting over to Goose. I see that the the ASIC for Goose is lower than what it was in the tech report by bit. You know, what what are the some of the efficiencies that would explain this delta favorable delta?

And is there a read through for lower cost at Goose in 2026 versus the technical report? Or is some of the CapEx that you kinda push forward also provide read through for lower ASIC in 2026?

Clive Johnson, President and CEO, B2Gold Corporation: Yeah. Maybe I’ll count I’ll I’ll talk and then I’ll let Mike correct me. So with when we wrote the technical report, really, the information we had was what was created by Sabina for the feasibility study and the actuals we had during construction. Right? And so in construction, you there’s all these inefficiencies where you’re flying stuff in, you’ve got the wrong crew.

You know? What we’ve seen is is we’ve now been able to tighten that up, and particularly around the mining side, is that that we’re probably a little bit worse than what Sabina had had promised the world, but a lot better than what we had seen as kind of a developer. And so I do I do believe that this cost that we’re now presenting on the mining side, in particular, and and hopefully on the milling side, will carry through, and we’re gonna see those. I I think I can’t remember what we said they were ultimately gonna be our off chain cost, but they were coming down, and we do see those as real.

Bill Lytle, COO, B2Gold Corporation: Okay. Thanks for that, Bill.

Clive Johnson, President and CEO, B2Gold Corporation: How long may I have done? Part of the part of the impact in in ’25 numbers is we’re we’re using post commercial productions since post September. That would be estimated. So you have a you have a production split there between q three and q fours, and but you also have some of the CapEx that we pulled forward and accelerated, you know, so it’s already incurred. So that has some impact on the post commercial production numbers.

Bill Lytle, COO, B2Gold Corporation: Okay. Great. Thank you. That’s all for me. Good luck with the rest of the quarter.

Clive Johnson, President and CEO, B2Gold Corporation: Thanks. And the next question is from Carey MacRury with Canaccord Genuity. Please proceed. Hi. Good morning, guys, and congrats on the quarter.

Maybe just a question for Mike on the accounting around do you smell that you’re, you know, ramping up production. Are we gonna see OpEx starting from now Goose, or is that gonna come after commercial production? No. Yeah. You’re right, Donna.

It’s like the in the new world order, it’s been for a few years, all results will go through on the p and l and and all production reported is just so you’ll see everything from q three, whatever production you have, whatever operating cost we have, whatever sales we have, you’ll see them in our financial results. Okay. So we’ll be presenting the cash cost and all in post commercial production. And that and that’s based in the OpEx guidance you’ve given us. Yep.

I presume. Yeah. Okay. And then maybe just back on Fekola Regional, assuming the permit comes in the near future here, is that still an attractive area from an exploration focus, or do you see better opportunities also just given the economics of that area now? I’ll get the clean glass stuff for the exploration outside of the.

Yes. One of the areas that we see outside is the beneath the oxide resource that is pretty much covered, and we have sufficient oxide ounces to keep us going there quite a while. So I think the big push is to actually pursue high grade, fresh or sulfide material that needs to fit or beneath the the oxide within the Colo region. And that’s that’s really where a lot of the upside is. The other is looking at the underground.

You know, obviously, pursuing that as as we develop the underground, we’ll be able to drill down plunge. So there’s nothing to suggest that that is clinical. We’ll certainly be pushing that forward. And there’s also potential for picking up a parallel shoot to the main zone at the Polo underground as well. So that’s that’s really where the potential is.

On Dan Doka, which is part of the Polo regional, I think we’ve pretty much covered that. There’s there’s not a hell of a lot more there. But that’s that’s it, really. You speak to your question by now. Yeah.

We have a $6,062,000,000 dollar budget, US for. Both of that is accrued, about half. And then, obviously, ongoing drilling in Mali, pursuing extensions of the Antelope deposit in Namibia and also looking at the potential for service material in Namibia to complement and to help the throughput as we look down the road at Otjikoto to ease more than just the stockpile to blend the high grade ore material that we have there. So that’s where where it’s at. And then also pursuing new areas, you know, using and leveraging of our experience in in my in my body, in Philippines.

We’re looking at opportunities in in the middle moment. Of So that’s all very early stage. And then, I guess, that’s that’s the Okay. Great. And maybe one last question for me.

Just on grandma latte again. Were you guys did this feasibility study kinda meet with what you’re expecting? And I guess what I’m asking is if, you know, we get through the permitting for next twelve to eighteen months, right, in a $3,000 gold environment. Is it you know, how likely is this to move forward? Well, I think we we like, what we saw in the study do kind of surprise to us.

You know, it’s been a a ton of work done over the years by EGA and by ourselves and by the combined GWAS over a while for you to tell me now 100% of the course, but there’s a lot of lot of technical work, a lot of studies that happened before that you do know, I mean, really, you can’t. It’s what it is. So I think it’s worth the growth price. We’d expect the feasibility study to be close to the to the to the VA. And, you know, I I think when you look at that project with potential to produce in 240,000 ounces a year of the Gated Gramalote.

There aren’t many of those around. We own a 100%. We want to buy it. We like the economics. And I don’t know how you would you know, if you don’t know that, what what are you gonna do in terms of projects in today’s coal bar that you that you own and put this in a good jurisdiction.

So, you know, at the end the day right now, we see it looks very capable as a well, so far the upside capitals for this company. Okay. Great. Thanks. Thanks, Greg.

Thanks, guys. Thanks. Again, if you are an analyst and you do have a question, please press star then 1. And at this time, there are no further questioners in the queue. And this does conclude today’s question and answer session.

I would now like to turn the conference back over to Clive Johnson for any closing remarks. Thanks. Think we have good questions and you’ve been covering a lot of ground there. One final question I have for the analysts is if anybody can figure out the market, I’d like to know how we’ve been told that But good quarter, I got it and see the stock down. That’s a bit of surprise for the market.

It was always a surprise for us, I guess. So thank you very much for participating in the call. Today’s conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect your lines, and have a pleasant day.

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